Trump draws US into another Middle East war

Today’s agenda: Suicide bombing in Damascus; Spain’s Nato target opt-out; Revolut CEO in line for windfall; and Tesla’s robotaxis

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Good morning, and welcome back to FirstFT. The US has been drawn into another Middle East war, bombing three nuclear sites in Iran yesterday. Here’s what happened, and what to expect.

The situation now: US B-2 stealth bombers led an attack on Fordow, Natanz and Isfahan using what defence secretary Pete Hegseth called “misdirection”. US President Donald Trump claimed the sites were “completely and totally obliterated”, but the extent of the damage is still being assessed. Much depends on the whereabouts of Iran’s 408kg stockpile of uranium, enriched to levels just short of weapons-grade. Israel and Iran traded more air strikes this morning.

The global fallout: Oil prices hit a five-month high over fears Tehran would retaliate by attacking energy infrastructure in the region or closing the critical Strait of Hormuz. Gold prices rose during early trading in Asia before paring back gains, while the US dollar also rallied. More than 150 airlines have suspended or diverted flights due to the conflict, with British Airways and Singapore Airlines cancelling flights to Dubai yesterday.

What’s next? US officials said there were no plans for further attacks unless Iran hits back, but Trump has raised the possibility of “regime change”. He will chair a national security meeting today. Tehran is weighing whether to retaliate or heed European nations’ and the UN’s calls to seek a diplomatic solution. Iran’s foreign minister Abbas Araghchi is meeting Russian President Vladimir Putin, one of Tehran’s closest allies, today. Israel has signalled it will press on with its bombing raids against Iran.

Follow our live blog for the latest updates, and we have more analysis on the conflict:

• Gideon Rachman: Tehran’s grand strategy has failed, but that is no guarantee Israel and the US can succeed, writes our chief foreign affairs commentator.

• Trump’s gamble: The US strike could backfire on a president who had vowed not to draw America into new global conflicts. 

• A deal is possible: Iran needs to show flexibility and the US must shift away from maximalist demands, writes Ellie Geranmayeh of the European Council on Foreign Relations.

• The FT View: Trump’s step into the dark makes the world a more dangerous place, writes our editorial board.

Join our subscriber-only webinar on Wednesday with FT journalists and guests and put your questions about the conflict to our panel. Register here. And here’s what else I’m keeping tabs on today:

• UK: Sir Keir Starmer will invest £2bn over four years to cut energy prices for thousands of businesses. Read the prime minister’s op-ed in the FT as he unveils a long-awaited industrial strategy.

• Brussels: EU foreign ministers meet to discuss Ukraine with sanctions on Russia due to expire, while the bloc holds a summit with Canada. European Central Bank chief Christine Lagarde addresses the European parliament.

• Macron in Norway: King Harald V and Queen Sonja welcome the French president and his wife Brigitte at the start of a two-day state visit.

Five more top stories

1. At least 20 people were killed in a suicide bombing at a church in Damascus yesterday evening, the first major security incident in Syria’s capital since the Assad regime was toppled last December. The Syrian government said jihadi group Isis was responsible for the attack.

2. Spain has secured an opt-out from a Nato defence spending target demanded by Trump, the country’s prime minister said. Pedro Sánchez announced the deal ahead of the military alliance’s summit this week, where allies are expected to agree to spend 5 per cent of GDP on defence.

3. Exclusive: Revolut’s chief executive is in line for a multibillion-dollar windfall if he more than triples its current valuation to about $150bn. People familiar with the matter say Nik Storonsky, who founded the fintech in 2015, would see his stake increase significantly under a long-standing Elon Musk-style pay deal. 

4. European countries face paying more for medicines due to Trump’s plans to cut drug prices in the US, industry experts have warned. European countries are likely to resist significant price rises because budgets are stretched and many contracts with companies are long. This could also mean drugmakers end up not launching new medicines in these markets.

5. Tesla’s robotaxi service launched in the company’s home city of Austin yesterday with about 10 vehicles and a human safety driver on board amid regulatory scrutiny of its self-driving technology. CEO Elon Musk has touted the self-driving taxis as the future of his flagging electric-car maker.

News in-depth

Mark Zuckerberg is betting more than $14bn that a well-connected 28-year-old is the catalyst his company needs to catch up with rivals racing to develop and commercialise artificial intelligence. The Meta boss struck a deal recently to buy 49 per cent of Scale AI — but the real prize was the data labelling business’s head, Alexandr Wang.

We’re also reading . . . 

• Return to office: When top executives work remotely, it becomes more difficult to drag everyone else to their desks, writes Pilita Clark.

• Serial CEOs: Higher pressure and more scrutiny mean leaders are often taking a “one and done” approach to the top corporate job, writes Anjli Raval.

• Fred Smith: The man who founded FedEx in 1973, and stepped down as chief executive only three years ago, died on Saturday. He was 80.

Chart of the day 

Germany and Italy are facing calls to move their gold out of New York following Trump’s repeated attacks on the Federal Reserve and increasing geopolitical turbulence.

Take a break from the news

Is F1 the last hope for originality in summer blockbusters? Hollywood is relying on sequels and reboots more than ever, writes FT film critic Danny Leigh. If Apple’s motor racing movie fails, it could be the end of the road for new ideas.